Friday, August 5, 2011

OSK Research upgrades GAB to Buy, raises TP to RM13.58

KUALA LUMPUR: OSK Research has upgraded GUINNESS ANCHOR BHD [] to a Buy with higher target price of RM13.58 (from RM10.18) and said the company's FY11 earnings of RM181 million (+19% y-o-y) came in above expectations by 9%.

For the 4Q period, the lower margins and earnings contraction were due to some provisions for market restructuring, the research house said in a note Aug 5.

'Moving forward, we expect GAB to register positive volume growth with the Euro 2012 as a kicker for next year's beer consumption.

'We do not expect an excise duty hike in the upcoming budget. A final DPS of 44 sen was declared. We raise our FY12-13 earnings by 19-27% and upgrade GAB to BUY based on our remodeled FCFF valuation," it said.

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